The internal rate of return (IRR) is 10.53%
According to the question given,
Year 0 = $46,000
Year 1 = $11,260
Year 2 = $18,220
Year 3 = $15,950
Year 4 = $13,560
One can calculate the IRR by using the difference between the current or expected future value and the original beginning value which is divided by the original value, and the result is multiplyed by 100. The internal rate of return (IRR) is the yearly rate of growth that a venture is supposed to produce. IRR is determined to involve a similar idea as net present value (NPV), with the exception of it setting the NPV equivalent to zero.
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